The 5G spectrum bandwagon has started today. The auction promises to usher in a new era in state-of-the-art telecom services. But for Indian telcos, it is also a moment of reckoning, a trapeze act with a fine balance. As they pick up the spectrum bands, they will also be eyeing long-term business economics. How do they pick up the frequencies that make for a compelling business proposition and not leave a huge dent in their already fragile balance sheet? Telcos may initially target mid-bands that provide affordable services, and more importantly, can connect to handsets already available in the market. The 700 MHz band is the primary 5G band globally, but this may not happen immediately in India because of its very low cost.
Here’s how the battle for spectrum may go in the next few days as telcos look for a bang for their mega bucks.
Which bands are used to offer 5G services?
Spectrum is a natural but limited resource that allows different types of communication. The spectrum is divided into frequencies in the low, middle and high bands. The sub-GHz or low bands have airwaves of less than 1000 MHz, which is great for ensuring voice and data communication over short distances. These bands are typically used by carriers to add capacity to their networks. The middle bands are between 1 GHz and 6 GHz, which includes the 3.5 GHz band that the Indian government is putting up for auction starting today. The higher bands are between 24 Ghz and 40 Ghz, including the 26 Ghz band that is still available for sale today. Telecom companies need a combination of airwaves in these bands to provide 5G services.
Which is the best spectrum band for 5G?
It is expected that operators will focus on mid- and high-band spectrum to roll out 5G services in India. Telecom companies can focus on mid-band network rollout for the first two-three years as it is comparatively cost-effective and there is adequate device availability in the market. The device ecosystem plays a big role in deciding the band. Almost every mid-range to premium segment smartphone launched in India in the last two years will support the 3.3-3.67 GHz band.
Why is the 3.5 GHz band considered the best for business?
Mid-band i.e. 3.3-3.67 GHz provides faster throughput speed and more capacity than low band. It strikes a fine balance between speed and coverage and supports all three primary usage categories of 5G-eMBB (Advanced Mobile Broadband), mMTC (Massive Machine Type Communications) and uRLLC (Ultra-Reliable and Low Latency Communications). Rolling out services only on the 26 GHz band would also be very costly as the reduced range of airwaves in this band would require operators to invest heavily in small cells. Similarly, globally the 700 MHz band has been identified by the International Telecommunication Union as the primary band for 5G, as it enables higher quality connectivity with better indoor penetration and has a longer reach than the middle band. Is. But in India, the band is priced prohibitively compared to the 3.3-3.6 Ghz band.
What are the benefits of having spectrum in the 26 GHz band?
This band, also known as the mmWave band, allows extreme capacity, ultra-high throughput, and ultra-low latency, but only over short distances. There are not enough devices supporting this band in the Indian market but that does not mean that the band is not an essential part of the 5G network. Initially, operators are likely to use this band in select dense urban areas primarily for enterprise applications, captive networks and hotspots. Later, it can come into the big picture when there are use cases that demand the kind of speed that is supported with the availability of the device. This band also has a huge economic advantage. By purchasing this band, telcos can greatly reduce their spectrum usage fee liabilities on their overall spectrum purchase and existing levies on previously purchased airwaves.
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